OpenAI is cutting Microsoft’s role down to size. The company told investors that it will start sending less of its money to Microsoft as it pushes forward with a new structure that puts the brakes on CEO Sam Altman’s control and keeps power with its nonprofit parent.
This internal change comes with major financial changes. By 2030, OpenAI said Microsoft will receive only half of what it was originally promised.
According to Reuters, OpenAI shared projections showing that its revenue-sharing agreement with Microsoft would shrink from 20% to 10% over the next few years. Microsoft’s current agreement, which runs through 2030, had locked in a 20% cut.
That number is now expected to be cut down as part of the company’s new plan. OpenAI said this directly to current and potential investors, based on what was in private financial materials.
OpenAI tightens grip while Microsoft pushes for more
OpenAI’s parent nonprofit is keeping its authority over the business instead of moving ahead with a big restructuring that would have shifted power to Altman. That change directly limits how much control Altman can gain over the company. The decision also gives the nonprofit tighter control over deals, direction, and who gets paid in the long term.
OpenAI also clarified to investors that it will not only reduce Microsoft’s share but will only allocate 10% of revenue to all commercial partners combined—including Microsoft—by 2030. Microsoft, meanwhile, has been asking for extended access to OpenAI’s products beyond the end of the contract. This includes future models, which the tech giant hopes to integrate into its services long-term.
Back in January, Microsoft had already made moves to protect itself. It adjusted some parts of its OpenAI deal shortly after launching a $500 billion joint venture with Oracle and SoftBank to build a network of massive artificial intelligence data centers across the U.S.
Microsoft commented on the situation, saying it still has “revenue sharing agreements that flow both ways” with OpenAI and that the key parts of their partnership are still active and valid until 2030. OpenAI also responded publicly, with a spokesperson saying, “We continue to work closely with Microsoft, and look forward to finalizing the details of this recapitalization in the near future.”
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